http://timworstall.com/2009/11/16/seems-obvious-really/ It is all obvious or trivial except... Tue, 16 Mar 2010 20:41:34 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://timworstall.com/2009/11/16/seems-obvious-really/comment-page-1/#comment-37343 Mark T Wed, 18 Nov 2009 00:03:26 +0000 http://timworstall.com/?p=11175#comment-37343 But it is all a huge red herring. AIG financial products had an "ideal" incentive system. The problem however wasn't the bonus structure, it was the very existance of AIG FP. It was writing re-insurance with no capital and was completely unregulated. UK banks overlent because the 'system" allowed them to think they had no risk. Gordon Brown is running a class war anti bankers strategy as a last ditch tactic to get re-elected. It is disingenuous at best, and certainly counterproductive and dangerous But it is all a huge red herring. AIG financial products had an “ideal” incentive system. The problem however wasn’t the bonus structure, it was the very existance of AIG FP. It was writing re-insurance with no capital and was completely unregulated. UK banks overlent because the ’system” allowed them to think they had no risk. Gordon Brown is running a class war anti bankers strategy as a last ditch tactic to get re-elected. It is disingenuous at best, and certainly counterproductive and dangerous

]]> http://timworstall.com/2009/11/16/seems-obvious-really/comment-page-1/#comment-37332 Mark Brentano Tue, 17 Nov 2009 15:10:29 +0000 http://timworstall.com/?p=11175#comment-37332 Forgive my ignorance, but given that some banks have gone to the wall and others have laid off many of their staff, shouldn't there now be a labour surplus in that market, with the concomitant drop in salaries on offer? Forgive my ignorance, but given that some banks have gone to the wall and others have laid off many of their staff, shouldn’t there now be a labour surplus in that market, with the concomitant drop in salaries on offer?

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